EV CEO's $112M Deal Fueled by FAKE Orders: SEC Slams 'Battle Motors'!

SEC v. Michael W. Patterson and Battle Motors, Inc. — U.S. Securities and Exchange Commission Litigation Release No. 26585, dated July 13, 2026.

The SEC charged Battle Motors, an electric vehicle company, and its CEO, Michael W. Patterson, with misleading investors about the company's success. They allegedly inflated the number of vehicle purchase orders and the size of their dealer network to secure $112.5 million in convertible debt. Both parties settled the charges without admitting guilt, agreeing to injunctions and paying civil penalties.

In Plain English

Imagine a car company told investors they had tons of orders for their new electric trucks, making it sound like they were doing great. But in reality, they had very few actual orders. The company and its CEO also exaggerated how many dealers they had. They settled with the SEC, agreeing to pay fines and stop making misleading statements.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

1. Misrepresenting Purchase Orders Battle Motors and its CEO, Michael W. Patterson, allegedly told investors that the company had received 115 electric vehicle purchase orders totaling $30 million within three months. In reality, Battle only had purchase orders for eight vehicles, amounting to approximately $2 million in actual sales. The rest were merely expressions of customer interest.
2. Exaggerating Dealer Network The company and Patterson also represented that Battle's dealer network comprised 180 dealers with 320 locations. However, at the time of these statements, Battle allegedly had a dealer network consisting of only 47 dealers with 156 locations.
3. Securing Convertible Debt These misleading statements were made in connection with a convertible debt offering. Through these alleged misrepresentations, Battle Motors successfully raised $112.5 million from two outside investors.

The Enforcement Action

On July 10, 2026, the SEC filed a settled action against Battle Motors, Inc. and its CEO, Michael W. Patterson, for allegedly misleading investors about the company's success in connection with a convertible debt offering. Battle and Patterson misrepresented the number of vehicle purchase orders and the size of their dealer network. Without admitting the allegations, they consented to final judgments, subject to court approval, permanently enjoining them from violating Sections 17(a)(2) and (3) of the Securities Act of 1933. The judgments would also order Battle to pay a $591,127 civil penalty and Patterson to pay a $118,225 civil penalty, and impose a two-year officer and director bar on Patterson.

Named in this action: Battle Motors, Inc., Michael W. Patterson.

Original SEC litigation release ↗ · Browse all cases